Tax For Bond Interest (Financial Minister Regulation No 85/PMK.03/2011 as amended in No.07/PMK.011/2012

Ministry of Finance Regulation No 85 Year 2011 about Withholding Procedures, Depositing, and reporting on Bond Interest Income, confirms that the Bond Interest are subject to final withholding tax, with the rates: • 15% (fifteen percent), for the resident Taxpayers and permanent establishments; • 20% (twenty percent) or in accordance with a tariff based on Double Taxation Treaty for foreign taxpayer other than a permanent establishment And for the Mutual Fund taxpayer registered at the Capital Market Supervisory Agency and Financial Institution, the bonds interest income tax rate are: • 0% (zero percent) for the years 2009 to 2010; • 5% (five percent) for the years 2011 to 2013; • 15% (fifteen percent) for 2014 and beyond. Some things in FMR No 85/PMK.03/2011 was amended in FMR 07/PMK.011/2012. Namely: • In the event of a negative discount or loss upon of the Bonds sale, it can be calculated with accrued interest income. • The Bonds seller must notify the tax cutters about the acquisition price and the actual date of the acquisition of bonds, for the purposes of tax base calculation. • In the event that the actual cost and date of Bonds acquisition can not be determined, it have to be determined by using First In First Out method. • In the event that the seller did not notify the date and the cost of the Bonds acquisition, The interest income that are not or less informed is subject to income tax in the year untruth knowing and also charged administrative sanctions (2% each month). • The tax cutters must notify the tax payers by submitting a Final Income Tax Withholding Evidence Article 4 .2. This provision also applies to sellers who are withheld no Final Income Tax.